Economic Press Monitor October 24 - 30, 2021	Days:  16 23 30 06 13

economic & politics

NETGAZETI.GE: “ACCORDING TO “IPSOS”, “DREAM” LEADS IN TBILISI, “UNM” – IN OTHER 4 BIG CITIES”

October 28, 2021 - According to poll of Ipsos Global, Kakha Kaladze, incumbent mayor of Tbilisi and ruling Georgian Dream’s candidate for this post would win 51.6% of votes, while Nika Melia, candidate of opposition United National Movement (UNM) – 48.4%.

In Georgia’s remaining 4 cities with population over 100,000, candidates of UNM are in lead.




REZONANSI: “BEFORE THE 2^ND ROUND, LARI BEGAN TO FLUCTUATE AGAIN”

October 28, 2021 - A few days before the second round of local elections in Georgia (October 30), lari has depreciated slightly, the newspaper notes. In particular, exchange rate has passed mark of 3.15 GEL/USD, while it had fluctuated within 3.12-3.14 GEL/USD so far.




BANKEBI DA FINANSEBI: ““TBC CAPITAL”: EXPORT TO CHINA INCREASED SIGNIFICANTLY AND THE SHARE WAS HIGHER THAN OF THE EU”

October 27, 2021 - TBC Capital reported that Georgia’s export to China has significantly increased this year, and its share in Georgia’s total export was higher than that of the EU. The EU retains on the first place in terms of share in Georgia’s import, the company pointed.




REZONANSI: “COST OF ONE TON OF SCRAP REACHED ALMOST 1,000 LARI”

October 27, 2021 - In Georgia, price of scrap metal is constantly growing, but in conditions of the pandemic, a noticeable increase has been recorded, the newspaper says.

The article points that 2-3 years ago, 1 t of scrap cost 400-420 lari, while today it has increased 2 and more times and reached 950 lari.




BANKEBI DA FINANSEBI: ““THE PANDEMIC HAS STALLED PRODUCTION OF ELECTRIC VEHICLES IN KUTAISI, BIG PART OF THE PLANT HAS BEEN ALREADY IMPORTED””

October 26, 2021 - A project, which envisaged production of electric vehicles in Kutaisi, was launched about 2 years ago, reminded Georgia’s Prime Minister Irakli Garibashvili. “We had a very serious investor, then the pandemic stalled this process and as a result, the project was postponed”, he pointed.

macroeconomics & budget

BANKEBI DA FINANSEBI: “LEVAN SURGULADZE: IF DOUBLE-DIGIT INFLATION CONTINUES, PROCEEDS OF THE PENSION FUND WILL TURN NEGATIVE”

October 29, 2021 - The newspaper re-publishes article of commersant.ge regarding assets of Georgian Pension Agency.

As the article notes, 1.17 Georgian citizens are included in the partially mandatory system of accumulative pension, and pension assets have exceed already 1.77 billion lari.




BANKEBI DA FINANSEBI: “KOBA GVENETADZE – DEPRECIATION OF LIRA IS BALANCED BY STRENGTHENING OF CURRENCIES OF OUR OTHER TRADE PARTNER COUNTRIES, EXTERNAL SECTOR HAS ALSO BEGUN TO RECOVER”

October 29, 2021 - Koba Gvenetadze, president of National Bank of Georgia (NBG), indicates that effective exchange rate of lari has been stable in recent months. Strengthening of currencies of other countries has balanced depreciation of Turkish lira, he explains (Turkey is one of Georgia’s main trade partners).




FORBES GEORGIA: “ACCORDING TO INFLATION LEVEL, GEORGIA RANKS 17^TH IN THE WORLD”

October 28, 2021 - International Monetary Fund (IMF) reported that among 178 countries, Georgia ranks the 17^th according to inflation level. According to September data from the portal Tradingeconomics, Georgia’s inflation rate in the past year made up 12.3%.




BANKEBI DA FINANSEBI: “MAIN INVESTORS OF THE COUNTRY ARE EMIGRANTS – VOLUME OF REMITTANCES 4.5 TIMES EXCEEDS FDI”

October 28, 2021 - The World Bank estimates that Georgia ranks 24^th in the world in terms of dependence on remittances.

As the article notes, inflow of remittances in Georgia has increased since 2016 and in recent years, has exceeded 10% of GDP.




REZONANSI: “BUDGET DEFICIT IS VERY BIG – “EVERY NEXT DEBT WILL COST MORE””

October 26, 2021 - Budgetary Office of Georgian Parliament reported that deficit of the Treasury totaled for 9 months of this year to 2.57 billion lari. Georgia had no such a high level of deficit during last 10 years, the article notes.

energy, oil & gas

REZONANSI: “IN A MONTH, POPULATION WILL FEEL AT ONCE HEAVY BURDEN OF INCREASED UTILITY TARIFFS”

October 26, 2021 - Georgian population meets the winter with utility tariffs increased by 15-25%, the newspaper says.

The article reminds that in line with Georgian National Energy and Water Supply Regulating Commission’s decision of December 29, 2020, consumer electricity tariffs have been increased in 2021.




BANKEBI DA FINANSEBI: “ABRAMISHVILI TO HUDAK: WITHOUT LARGE HPPS, THE COUNTRY WILL HAVE A HARD TIME”

October 26, 2021 - Giorgi Abramishvili, executive director of Georgian Renewable Energy Development Association, says that Georgia’s energy system “will not be able to exist without large hydroelectric power plants, it will be very difficult and very expensive”. Dependence on import will grow, including import from Russia, he points.




NETGAZETI.GE: “I THINK THAT TIME OF LARGE HPPS HAS ENDED IN GEORGIA – ADVISER TO THE PREMIER”

October 25, 2021 - “My personal feeling is that the time of large hydropower projects has ended in Georgia”, adviser to Georgian Prime Minister Vazil Hudak said in an interview with Forbes Talks. I say this based on “how big is local opposition to projects of this type”, he explained.

conflict and court

NETGAZETI.GE: “LITIGATION OVER OIL CONTINUES: TWO “FRONTERAS” INSTEAD OF ONE?”

October 29, 2021 - The article reviews the situation with activity of American oil company Frontera in Georgia. As the article notes, a multi-month and multimillion-dollar litigation was underway in arbitration between Georgia and Frontera, which ended in early 2020.

companies

BANKEBI DA FINANSEBI: ““TBC” ATTRACTED FINANCIAL RESOURCE OF $10M FROM EFSE”

October 27, 2021 - TBC Bank and the European Fund for Southeast Europe (EFSE) signed a $10 million credit agreement, the newspaper reports. The funds are intended to financing of micro, small and medium-sized businesses in Georgia.




FORBES GEORGIA: “LAUNCH OF NEW MULTIMODAL TERMINAL IN BATUMI”

October 27, 2021 - The magazine publishes an interview with Mamuka Murjikneli, director general of multimodal terminal opened in the Batumi port in April. Prior to his appointment to this post, he was Georgia’s ambassador to Turkmenistan (since February 2019).




FORBES GEORGIA: “AUTHOR OF LARGE-SCALE PROJECTS”

October 25, 2021 - Implementation of such projects as a new stadium in Batumi, a new terminal at Kutaisi airport and rehabilitation of Gudiashvili and Orbeliani squares in Tbilisi is connected with the construction company Anagi, the article pointed. Besides the government, the company has over 150 local and foreign private customers.




FORBES GEORGIA: “EUROBONDS OF “GEORGIAN RAILWAY” – THIS TIME, GREEN ONES”

October 25, 2021 - “Green” bonds of $500 million, issued by Georgian Railway, have been traded on London Stock Exchange for 3 months already (maturity – 7 years, yield rate – 4%), the magazine notes. This emission was used to refinance bonds emission of 2012, the rate on which made up 7.75%.




BANKEBI DA FINANSEBI: “EFSE AND “TBC LEASING” JOIN FORCES TO SUPPORT GROWTH OF SMALL AND MEDIUM-SIZED BUSINESSES IN GEORGIA”

October 25, 2021 - The European Fund for Southeast Europe (EFSE) has allocated loan of $6 million (in lari equivalent) to TBC Leasing. The funds are aimed to finance capital expenditures of Georgian small and medium-sized enterprises.

agriculture & food

REZONANSI: “CHEAP FLOUR OR SAVING JOBS? – BUSINESS AND GOVERNMENT ARE FACING DILEMMA”

October 29, 2021 - Flour import to Georgia has increased significantly, while wheat import decreases due to customs duties, imposed in Russia, the newspaper says. In September, import of flour increased 7 times, the main country of import was the same Russia.